# Tech firms must ‘stamp out’ scam adverts or face fines, under Ofcom proposals

By Dr Rasha Kassem — 2026-07-13

Dr Rasha Kassem, senior academic and leader of the Fraud Research Group at Aston University, said: “The proposed measures represent a significant shift in regulatory expectations, placing direct legal responsibility on social media platforms and search engines to prevent fraudulent advertising rather than simply reacting to it.

“By requiring firms to implement proactive systems to detect, prevent and remove fraud, Ofcom is signalling that online platforms can no longer rely solely on user reporting or voluntary measures.

“Under the draft code, companies could face fines of up to £18 million or 10 per cent of global annual revenue, whichever is higher, if they fail to meet their legal obligations once the rules come into force.

“The proposals build on the UK’s Online Safety Act and include around 40 measures designed to reduce consumer exposure to fraudulent advertising, including preventing repeat offenders from creating new accounts, detecting impersonation of legitimate businesses, improving reporting channels, and testing AI-generated advertising tools against misuse by criminals.

“While these proposals represent a welcome step towards reducing online fraud, their success will depend on effective enforcement.

“Criminals continually adapt their tactics, often operating across multiple jurisdictions and exploiting automated advertising systems.

“As a result, platforms will need to invest in stronger identity verification, behavioural monitoring, AI governance and cross-platform intelligence sharing if they are to meet both the letter and the spirit of the new rules.

“The consultation remains open until October 2, with Ofcom expected to publish its final decisions in 2027.

“Until then, the regulator has made clear that major platforms should begin implementing improvements rather than waiting for the legal requirements to take effect, signalling a clear expectation that tackling fraudulent advertising should become a core element of platform governance rather than a reactive compliance exercise.”

Canonical: https://experts.pressassociation.com/expert/110/views/1c03056b57e97092